Investors are being overcompensated in Romania by the green certificates scheme for renewable energy projects, according to the country's energy authority ANRE. Following a review of the compensation granted renewable energy investors, ANRE deemed the returns as too high and recommended a reduction in the number of green certificates issued per project. The Romanian government must approve ANRE's recommendations before they are enacted.

ANRE is charged with ensuring that the rates of return from energy projects are maintained at constant levels. But the energy authority's review found that returns are significantly higher than the reference level and as a result has recommended a reduction in the incentive given.

New wind installations currently receive two green certificates per installed MW/h, but ANRE recommends that the rate should be reduced to 1.5 certificates. New small hydro plants (less than or equal to 10MW) would get 2.3 certificates under the new proposal, down from three green certificates, while the biggest cut is proposed for solar energy – down to three certificates from the current six awarded per MW/h. If adopted, the cuts would apply to all new projects.

The extremely favorable investment climate for renewable energy has brought a huge surge in projects, with wind capacity doubling and doubling again over the last two years. However, the incentive scheme has been criticized for being excessively generous, although the original plans did receive European Commission approval.

editor@romania-insider.com